Investors may want to consider airline stocks.
Sure, over the last few weeks:
– Delta Air Lines (DAL) fell from about $36 to $30
– United Airlines (UAL) fell from about $41 to $34.
– American Airlines (AAL) fell from $15.50 to $13
– JetBlue Airways (JBLU) fell from about $9 to $7.50.
But most are starting to take flight again.
All thanks in part to United Airlines, which just raised its third quarter revenue outlook, citing strong demand over the summer. “United now expects total operating revenue in the quarter to be up around 12% on 2019 levels, this is an increase from a previous forecast of 11%. Capacity expectations also improved to between 10% and 11% lower than 2019 levels, compared with an earlier outlook of 11% lower,” says Barron’s.
United “is likely the best positioned airline to take advantage of the next stage of the revenue recovery, which will come from large corporates and international travel continuing to move closer to 100% recovery,” added analysts at Jefferies, as quoted by Market Watch.
Should the industry continue to see positive news, airline stocks could regain lost altitude.